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Corn ended the multi-day positive streak today with a small loss. Although less than a cent decrease, it shows the strength of the resistance that exists at the 200-day moving average at 4.51 1/2. Our high for today was 4.51 1/4. You can also see that we have not cracked through October's high yet. Let's see what tomorrow brings. Was today just a corrective pullback, or did we see the highs already?
Corn was the leader today, and its bounce around unchanged led to the same activity in soybeans and wheat. Yesterday's WASDE report continued to pull the focus today as increases to demand in corn exports and ethanol cut corn carryouts. The smaller US carryout presents a picture that deviates from prior expectations.
With the 45Z regulations undefined, crushers are not given access to one of the main drivers of profit after Jan 1st.
Wednesday’s DOE report showed U.S. ethanol stocks at 22.6 million barrels for the week ending December 6, compared to 23 million barrels the previous week and 22.1 million barrels for the same week last year. Ethanol production increased by 3 thousand barrels per day to 1.076 million barrels per day, up from 1.073 million barrels per day the week before.
Funds were thought to have been all buyers.
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